At the beginning of March, the Equinix global footprint grew significantly larger with the opening of a brand new US$43 million data center in Tokyo. Called TY5, the new data center joins nine others in the Japanese capital and represents a major boost to Equinix’s presence in the Asia-Pacific, which is the company’s fastest growing region.
According to Kazuyuki Tokuhisa, Sales Director at Equinix Japan, TY5 is tailor-made to meet the strong demand from financial services firms, as well as cloud and content providers for data center and interconnection services. We asked him to explain what makes TY5 special and what it means for Equinix and its customers.
Q: Why is TY5 a big deal for businesses in Japan?
A: Well, first of all, there are a lot of companies looking for facilities in Japan to support their businesses. According to research from Forrester, the data center market in Japan is forecasted to reach US$14.2 billion in 2016. That demand is being driven by a host of sectors, ranging from perennial players such as financial services to newer industries like content providers – all of whom are looking for world-class data center facilities.
The brand new TY5 is state-of-the-art. That means it’s designed from the ground up to meet these demands and further enable domestic and multinational companies to expand into the growing Japanese market. For example, TY5 customers will be able to access over70 domestic and 1,100 international network service providers (NSPs) within Platform Equinix™, including local Japanese carriers and international carriers such as Softbank, PCCW Global, BT and AT&T.
Q: Why should customers choose TY5?
A: One good reason is proximity. TY5 is located very close to our existing TY3 data center, where many financial services customers as well as content companies, NSPs and Cloud Service Providers already have a presence.
In fact, TY3 has proven so popular, there is less room for expansion. With TY5 coming alive, all of these customers can scale up very easily, adding capability in TY5 to augment the capacity they already enjoy at TY3.
This works so well because TY3 and TY5 are connected via Equinix campus cross-connect, which opens up a host of expansion possibilities without any compromise in performance. New cabinets and cages can be set up simply and quickly as and when the customer’s needs dictate.
Q: What makes TY5 special?
A: The short answer is that TY5 is special because it’s an Equinix data center. The fact is that not all data centers are created equal, and nobody really wants to settle for second best. With TY5, along with the rest of the Equinix data center footprint in Tokyo, our customers don’t have to.
We already had four data centers in the Tokyo. TY5 and an additional five facilities from the recent Bit-Isle acquisition have dramatically expanded Equinix’s footprint in the city. All of these data centers are connected with the Equinix Metro Connect service that provides customers in one facility with a 1G or 10G connection to any other Equinix data center.
That not only guarantees scalability and easy expansion options, it also gives them full access to any Equinix service. Perhaps even more importantly, it provides convenient interconnection to the products, services and partnership opportunities with any other customers and partners within Equinix ecosystem.
Q: What kind of customers do you think will appreciate TY5 the most?
A: The Equinix offering has proven to be attractive to companies in virtually every industry, especially newer businesses that provide core capabilities like networking and content delivery. We expect that to continue to be the case as TY5 builds up its customer base. However, TY5 also makes tremendous sense for financial services customers.
The Equinix customer roster in Japan already includes some of Japan’s largest companies, including over 60 financial services firms. For example, TY3 is home to the largest concentration of foreign exchange trading firms in Japan. Multiple FX matching engines such as FXCM, Fastmatch and LMAX, are now connecting to Equinix’s established financial ecosystem of existing and potential customers and partners.
With the official opening of TY5, we expect the density of financial services customers in Japan to increase and the number of firms signing up to access this rich industry ecosystem to accelerate still further.